This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gold, Silver Prices Settle Lower

In the U.S., although the Federal Reserve won't be raising rates anytime soon, recent hawkish comments from Fed members have indicated that quantitative easing won't be reupped in June when the current program expires. Some more aggressive Fed presidents, like James Bullard, are calling for a $100 billion cut from the $600 bond buying program.

If rates are raised globally and the Fed stops pumping cash into the system, gold prices could take a hit. Gold prices rose 15.2% in the three months leading up to the Fed's quantitative easing announcement. Silver prices popped 53%

The Fed, and gold prices, will take direction from Friday's jobs number. Expectations are for the unemployment rate to stay at 8.9% and for the private sector to add between 190,000 and 200,000 jobs.

"I expect that if we see a rise higher than 225,000, you will see more expectations of a hawkish stance out of the Fed," says Phil Streible, senior market strategist at Lind-Waldock, "[which would lead] to a strengthening dollar therefore putting pressure on the gold market."

Gold and silver are also contending with rebalancing headed into the second quarter where portfolio managers juggle positions to either take profits or ramp up holdings. Streible believes that "fund and money managers [will] continue to hold both positions as [the metals] continue to prove results by making new contract highs quarter after quarter."

Scott Redler, chief strategic officer for T3Live.com, sees gold as an investment and silver as a trade for the second quarter. "If we finally get a real breakout above $1,445-$1,450 and it holds, then I think we get to $1,550 and $1,600." Redler doesn't feel comfortable holding silver because prices are too volatile but looks for short term trading opportunities with the iShares Silver Trust (SLV).

Jeb Handwerger, editor of GoldStockTrades.com, is adding to his gold positions on pullbacks. "These long pauses in the uptrend usually result in major moves to the upside rather than bearish tops which usually end in parabolic moves."

Gold mining stocks, a risky but profitable way to buy gold, were mixed. Kinross Gold (KGC - Get Report) was down 0.83% to $15.45 while Goldcorp (GG - Get Report) was adding 0.62% to $48.76.

Other gold stocks, Agnico-Eagle (AEM - Get Report) and Eldorado Gold (EGO - Get Report) were trading at $65.32 and $16.02, respectively.


More on Gold
Gold Price News
How to Invest in Gold

-- Written by Alix Steel in New York.

>To contact the writer of this article, click here: Alix Steel.

>To follow the writer on Twitter, go to http://twitter.com/adsteel.

>To submit a news tip, send an email to: tips@thestreet.com.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AEM $28.43 0.00%
EGO $4.09 0.00%
GLD $111.76 0.00%
GG $16.18 0.00%
KGC $2.27 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs